Tunisia's prime minister has said that he will dissolve the Islamist-led government and form a national unity administration, following the killing of prominent secular opposition leader Shokri Belaid in front of his home.

Hamadi Jebali announced during a speech to the nation on Wednesday that he will form a cabinet of technocrats to run the country until elections are held.

"After the failure of negotiations between parties on a cabinet reshuffle, I decided to form a small technocrat government," Jebali said.

He said the ministers would not run for office but elections would subsequently be held as soon as possible.